GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2015
S

D
SENATE BILL 95
PROPOSED HOUSE COMMITTEE SUBSTITUTE S95-CSTC-41 [v.19]
7/9/2015 10:37:35 AM

Short Title:

Achievement School District.

(Public)

Sponsors:
Referred to:
February 23, 2015
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A BILL TO BE ENTITLED
AN ACT TO ESTABLISH THE ACHIEVEMENT SCHOOL DISTRICT.
The General Assembly of North Carolina enacts:
SECTION 1. Subchapter III of Chapter 115C of the General Statutes is amended
by adding a new Article to read:
"Article 7A.
Achievement School District.
" 115C-75.5. Definitions.
The following definitions apply in this Article:
(1)
Achievement school. An elementary school under the supervision of the
Achievement School District.
(2)
Achievement School District or ASD. The statewide school unit
established pursuant to this Article.
(3)
Achievement school operator or AS operator. An entity selected by the
State Board of Education upon the recommendation of the ASD
Superintendent to operate an achievement school. The State Board of
Education shall only select an entity currently operating a school or schools
in the State or a contractual affiliate of such an entity as an AS operator.
(4)
ASD Superintendent. The superintendent of the ASD appointed by the
State Board of Education in accordance with G.S. 115C-75.6(b).
(5)
Qualifying school. A school that includes all or part of grades kindergarten
through fifth that meets all of the following criteria:
a.
Earned a grade of F on its annual report card pursuant to
G.S. 115C-12(9)c1. for a minimum of two consecutive years.
b.
Received a school performance score that is in the lowest twenty-five
percent (25%) of all schools that include all or part of grades
kindergarten through fifth in each of the prior two years.
c.
Is identified as low-performing by the State Board of Education
pursuant to G.S. 115C-105.37.
" 115C-75.6. Achievement School District.
(a)
There is established the Achievement School District (ASD) under the
administration of the State Board of Education. The ASD shall assume the supervision,
management, and operation of elementary schools that have been selected as achievement
schools pursuant to this Article.
(b)
An ASD Superintendent Selection Advisory Committee shall be established to make
a recommendation to the State Board of Education on appointment of a superintendent to serve

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as an executive officer of the ASD. The Committee shall ensure that the individual
recommended has qualifications consistent with G.S. 115C-271(a). The Lieutenant Governor
shall serve as chair of the Committee, and shall appoint the following additional members:
(1)
Three members of the State Board of Education.
(2)
One teacher or retired teacher.
(3)
One principal or retired principal.
(4)
One superintendent or retired superintendent.
(c)
The State Board of Education or its designee shall consider the recommendation of
the ASD Superintendent Selection Advisory Committee and shall appoint a superintendent to
serve as the executive officer of the ASD. The ASD Superintendent shall serve at the pleasure
of the State Board of Education at a salary established by the State Board within the funds
appropriated for this purpose. The Superintendent of the ASD shall have qualifications
consistent with G.S. 115C-271(a) and report directly to the State Board.
(d)
By January 15 annually, the State Board and the ASD Superintendent shall report to
the Joint Legislative Education Oversight Committee on all aspects of operation of ASD,
including the selection of achievement schools and their progress.
" 115C-75.7. Selection of achievement schools.
(a)
The State Board of Education is authorized to select, upon the recommendation of
the Superintendent of the ASD, no more than five qualifying schools to transfer to the ASD as
achievement schools. The five qualifying schools selected for inclusion in the ASD should
represent geographic diversity, including urban and rural schools. The State Board of Education
shall select no more than one qualifying school per local school administrative unit.
(b)
The selection of qualifying schools shall be based on an analysis of performance
over the most recent three-year period. Prior to recommendation of selection of a qualifying
school, the ASD Superintendent shall conduct an evaluation of the school to determine the
factors contributing to the school's performance and shall confer with the school principal, local
board of education members, the local school superintendent, and the local board of county
commissioners to share the findings of the evaluation. The school selection process shall also
include a public hearing to allow for parent and community input. The ASD Superintendent
shall evaluate and identify the qualifying schools to recommend for selection as prospective
achievement schools no later than November 15 prior to the initial school year in which the
school may operate as an achievement school, and shall notify the local boards of education
where prospective achievement schools are located by that date. The State Board of Education
shall select the prospective achievement schools no later than January 15.
(c)
Upon notification by the ASD Superintendent of selection by the State Board of
Education of the qualifying school as a prospective achievement school, the local board of
education shall determine whether to close the selected qualifying school, as provided in
G.S. 115C-72, or to transfer the school into the ASD. No later than March 1, the local board of
education shall adopt a resolution either consenting to transfer of the selected qualifying school
to the ASD as an achievement school or closing that school at the conclusion of that school
year. The State Board of Education, upon the recommendation of the ASD Superintendent,
shall identify by April 1 an achievement school operator for the selected qualifying school
pursuant to G.S. 115C-75.8.
(d)
The list of qualifying schools and selected achievement schools shall be made
publically available on a Web site maintained by the ASD.
(e)
The ASD Superintendent may waive State Board of Education rules, regulations,
policies, and procedures, or the provisions of this Chapter for achievement schools; however
achievement schools shall be required to comply with, at a minimum, the statutory
requirements for charter schools as provided in Article 14A of this Chapter. The goal for each
waiver shall be improvement of student performance. All achievement schools shall comply
with all applicable constitutional and statutory nondiscrimination requirements.
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" 115C-75.8. Management of achievement schools.

(a)
An achievement school shall be subject to direct management by an AS operator
selected by the State Board of Education, upon the recommendation of the ASD
Superintendent, for a five-year contract. The State Board of Education shall only select an
entity to contract as an AS operator if that entity demonstrates one of the following:
(1)
A record of results in improving performance of persistently low-performing
schools.
(2)
A credible and specific plan for dramatically improving student achievement
in a low-performing school.
(b)
The AS operator shall be authorized to have a direct role in making decisions about
school finance, human capital, and curriculum and instruction for the achievement school while
developing the leadership capacity in such schools.
(c)
All achievement schools shall remain open to enrollment in the same manner with
the same attendance zone as prior to becoming an achievement school. If a local board of
education's reassignment of students within the local school administrative unit due to student
population changes or openings or closures of other schools impacts the achievement school,
the AS operator may appeal to the ASD Superintendent and request a hearing before the State
Board of Education regarding the reassignment. Notwithstanding G.S. 115C-366, the State
Board of Education shall, after hearing from both the local board of education and AS operator,
determine whether the reassignment of students impacting the achievement school may
proceed.
(d)
In addition to the transfer of funds as provided in G.S. 115C-75.9, the local board of
education shall be responsible for facility and capital expenditures at the qualifying school and
shall provide transportation to all students assigned to the achievement school unless the AS
operator and local board of education otherwise address provision of transportation or facility
and capital expenditures through a memorandum of understanding. For the purposes of this
subsection, facility and capital expenditures includes routine maintenance and repair and capital
expenditures includes building repair and maintenance, furniture, furnishings, and equipment.
If a memorandum of understanding is used to address provision of transportation or facility and
capital expenditures, the AS operator and local board of education shall finalize the
memorandum of understanding within 30 days of the initial request for the memorandum by the
AS operator. If the parties have not completed the memorandum of understanding within 30
days, the State Board of Education shall resolve any issues in dispute.
(e)
The local board of education shall make immediately available all student records to
the achievement school at no cost for all students of that school.
(f)
The AS operator shall select and hire the school principal for an achievement
school. Within the limits of the school budget, the AS operator or its designee shall select staff
members in accordance with guidance from the ASD Superintendent. Before finalizing staffing
recommendations, the AS operator and the ASD Superintendent shall interview all existing
staff members at the qualifying school and review student growth and performance data for
those staff members for whom it is available. The AS operator shall have the authority to
decide whether any administrator, teacher, or staff member previously assigned to a qualifying
school selected to become an achievement school shall continue as an employee of the
achievement school. Any such employees retained shall become employees of the ASD. An
employee hired to work in an achievement school shall be an employee of the ASD, and the
employees shall be under the exclusive control of the ASD. All employees of the ASD shall be
eligible for enrollment in the Teachers' and State Employees' Retirement System of North
Carolina, State Health Plan, and other benefits available to State employees. The AS operator
shall provide funds to the ASD in an amount sufficient to provide salary and benefits for
employees of the ASD working in the achievement school based on the terms of employment
established by the AS operator. Any employee who is not given the option to continue as an
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employee for the achievement school shall remain an employee of the local board of education.
The local board of education may determine, as a reduction in force, whether or not to continue
the employment of any employee who is not given the option to continue as an employee for
the achievement school. Local boards of education may use the authority contained in
G.S. 115C-47 to reassign staff.
" 115C-75.9. Achievement schools funds.
(a)
Funding Allocation Selection. State and local funding for an achievement school
shall be allocated as provided in subsection (b) or subsection (c) of this section. The AS
operator shall select one of the allocation methods as the method to be used for the achievement
school.
(b)
Designated Funding. Funding shall be allocated to the ASD for the achievement
school by the State Board of Education and local board of education as follows:
(1)
The State Board of Education shall allocate to the ASD for each
achievement school:
a.
An amount equal to the average per pupil allocation for average daily
membership from the local school administrative unit allotments in
which the achievement school was located for each child attending
the achievement school except for the allocations for (i) children with
disabilities, (ii) children with limited English proficiency, and (iii)
transportation. The State Board shall provide the allocation for
transportation to the local school administrative unit in which the
achievement school is located.
b.
An additional amount for each child attending the achievement
school who is a child with disabilities.
c.
An additional amount for children with limited English proficiency
attending the achievement school, based on a formula adopted by the
State Board.
(2)
The local school administrative unit in which the achievement school is
located shall transfer to the ASD for the achievement school an amount
equal to the per pupil share of the local current expense fund of the local
school administrative unit for the fiscal year. The per pupil share of the local
current expense fund shall be transferred to the ASD for the achievement
school within 30 days of the receipt of monies into the local current expense
fund. The local school administrative unit and ASD may use the process for
mediation of differences between the State Board and a charter school
provided in G.S. 115C-218.95(d) to resolve differences on calculation and
transference of the per pupil share of the local current expense fund. The
amount transferred under this subsection that consists of revenue derived
from supplemental taxes shall be transferred only to a achievement school
located in the tax district for which these taxes are levied and in which the
student resides. The local school administrative unit shall also provide the
ASD with all of the following information within the 30-day time period
provided in this subsection:
a.
The total amount of monies the local school administrative unit has
in each of the funds listed in G.S. 115C-426(c).
b.
The student membership numbers used to calculate the per pupil
share of the local current expense fund.
c.
How the per pupil share of the local current expense fund was
calculated.
d.
Any additional records requested by the ASD from the local school
administrative unit in order for the ASD to audit and verify the
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calculation and transfer of the per pupil share of the local current
expense fund.
(c)
Memorandum of Understanding. The AS operator, in consultation with the ASD
Superintendent, may enter into a memorandum of understanding with the local board of
education of the local school administrative unit where the achievement school is located for all
student support and operational services and instructional services to be provided by the local
board of education in the same manner and degree as in the prior school year or funding in an
amount equivalent to the amount the local board of education would have expended on those
services if provided. For the purposes of this subsection, student support and operational
services include transportation, cafeteria services, custodial services, broadband and utilities,
and student information services, and instructional services includes alternative education,
special education services, test administration services, textbooks, technology, media resources,
instructional equipment, and other resources. The AS operator and local board of education
shall finalize the memorandum of understanding within 30 days of the initial request for the
memorandum by the AS operator. If the parties have not completed the memorandum of
understanding within 30 days, the State Board of Education shall resolve any issues in dispute.
(d)
The ASD may seek, manage and expend federal money and grants and other
funding with the same authority as a local school administrative unit."
" 115C-75.10. Accountability and governance for achievement schools.
(a)
The AS operator shall set clear goals, empower and equip teachers and school
leaders to meet the goals, and hold such teachers and school leaders accountable to meet the
goals. The AS operator shall apply to the ASD Superintendent for appropriate waivers for the
achievement school pursuant to G.S. 115C-75.7(d).
(b)
The AS operator shall select, approve, or remove the school principal of an
achievement school that it is managing in accordance with this Article.
(c)
The AS operator shall enter into an agreement with the school principal regarding
specific goals for the achievement school related to higher academic outcomes for students,
safe and positive learning environments for children, parent and community engagement, and
the efficient and effective use of taxpayer dollars. The agreement shall be made publically
available on the ASD website.
(d)
An achievement school shall not be included in any State evaluation or performance
models used for the local school administrative unit in which the school is located, but shall be
considered a part of the ASD for all evaluation purposes.
" 115C-75.11. Term of supervision for an achievement school.
(a)
An achievement school shall remain under the supervision of the ASD for a
minimum of five consecutive years through a contract with an AS operator. The following shall
apply to the term of a contract with an AS operator of an achievement school:
(1)
If during the five-year contract, the achievement school's annual percentage
growth does not exceed the average annual percentage growth of other
qualifying schools for three consecutive years, the State Board of Education,
upon the recommendation of the ASD Superintendent, may terminate the
contract at the conclusion of the academic year and select another AS
operator in accordance with G.S. 115C-75.8 to assume the contract at the
beginning of the next academic year.
(2)
If by the end of the five-year contract, the achievement school remains a
qualifying school, but has exceeded the average annual percentage growth of
other qualifying schools, the State Board of Education, upon the
recommendation of the ASD Superintendent in his or her discretion, may
continue the contract with the AS operator for an additional five-year term
subject to subdivision (1) of this subsection.
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(3)

If by the end of the five-year contract, the achievement school receives a

grade of C or higher under G.S. 115C-12(9)c1., the AS operator shall have
the option to extend the contract for another five-year term subject to
subdivision (1) of this subsection.
(4)
The State Board of Education, upon the recommendation of the ASD
Superintendent, may terminate a contract with an AS operator at any time
during the contract for financial mismanagement, noncompliance with
federal or State laws, failure to comply with the terms of the contract, or
evidence of criminal activity.
(b)
An achievement school shall remain under the supervision of the ASD for no more
than 10 years. The ASD Superintendent shall engage the school, the school community, and the
school's local board of education in a negotiation to determine the best transition plan for the
school to leave the supervision of the ASD."
SECTION 2. G.S. 115C-105.37A is amended by adding a new subsection to read:
"(c) The State Board shall report annually to the Superintendent of the Achievement
School District on any schools identified under this section as qualifying schools as defined in
G.S. 115C-75.5 for consideration to be selected as achievement schools in accordance with
Article 7A of this Chapter."
SECTION 3. G.S. 115C-105.37B(a) reads as rewritten:
"(a) Notwithstanding any other provision of this Article,Article or Article 7A of this
Chapter, the State Board of Education is authorized to approve a local board of education's
request to reform any school in its administrative unit which the State Board of Education has
identified as (i) one of the continually low-performing schools in North Carolina.Carolina or
(ii) as a qualifying school that is not selected as an achievement school under G.S. 115C-75.7.
If the State Board of Education approves a local board of education's request to reform a
school, the State Board of Education may authorize the local board of education to adopt one of
the following models in accordance with State Board of Education requirements:
(1)
Transformation model, which would address the following four specific
areas critical to transforming a continually low-performing school:
a.
Developing and increasing teacher and school leader effectiveness.
b.
Comprehensive instructional reform strategies.
c.
Increasing learning time and creating community-oriented schools.
d.
Providing operational flexibility and sustained support.
(2)
Restart model, in which the State Board of Education would authorize the
local board of education to operate the school with the same exemptions
from statutes and rules as a charter school authorized under Article 14A of
this Chapter, or under the management of an educational management
organization that has been selected through a rigorous review process. A
school operated under this subdivision remains under the control of the local
board of education, and employees assigned to the school are employees of
the local school administrative unit with the protections provided by Part 3
of Article 22 of this Chapter.
(3)
Turnaround model, which would involve, among other actions, replacing the
principal, if the principal has been in that position for at least three years,
and rehiring no more than fifty percent (50%) of the school's staff, adopting
a new governance structure at the school consistent with this Article, and
implementing an instructional program aligned with the Standard Course of
Study.
(4)
School closure model, in which a local school administrative unit would
close the school consistent with G.S. 115C-72 and enroll the students who
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attended the school in other, higher-achieving schools in the local school

administrative unit consistent with Article 25 of this Chapter."
SECTION 4. The Department of Public Instruction, in its award of federal School
Improvement Grant funds as authorized under section 1003(g) of Title I of the Elementary and
Secondary Education Act of 1965, shall give first priority in award of those funds to
applications from a local school administrative units that (i) meet all eligibility requirements
required for a School Improvement Grant and (ii) have consented to the transfer of a selected
qualifying school to the Achievement School District.
SECTION 5. This act becomes effective only if funds are appropriated by the
Current Operations Appropriations Act of 2015 for the Achievement School District.
SECTION 6. This act is effective when it becomes law, and applies beginning with
the 2016-2017 school year.

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